Sovereign bond holders exempted from corporate, income tax

Monday, Nov 03, 2014 14:12

Exemption of sovereign bonds from corporate and personal income tax is expected to lure more participation from businesses. — Photo

HA NOI (Biz Hub) — The Government has exempted the sovereign bonds, issued in the international market in 2014, from corporate and personal income tax.

The Ministry of Finance has been asked to supply the related documents to the investors, said the Government order.

Viet Nam is holding roadshows in Singapore Hong Kong and London, as well as in Boston, New York and San Francisco from October 29 to November 5, to raise US$1 billion from sovereign bonds.

This is the third time the Government has issued sovereign bonds since 2005. It's expected to be swapped with debts that will be due next year.

Viet Nam raised $750 million from its first dollar-denominated bond sale at a 7.125 per cent annual yield in 2005. The 10-year loan went to the debt-laden Vinashin, now known as the Shipbuilding Industry Corporation.

In 2010, the country borrowed $1 billion from its second sovereign bond sale at a 6.75 per cent annual yield, and this was given to key State-owned economic enterprises. — VNS

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